Is Fidelity Select Consumer Discretion (FSCPX) a Strong Mutual Fund Pick Right Now?
If you've been stuck searching for Sector - Other funds, consider Fidelity Select Consumer Discretion (FSCPX) as a possibility. FSCPX carries a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
FSCPX is a part of the Fidelity family of funds, a company based out of Boston, MA. The Fidelity Select Consumer Discretion made its debut in June of 1990 and FSCPX has managed to accumulate roughly $555.28 million in assets, as of the most recently available information. The fund is currently managed by Jordan Michaels who has been in charge of the fund since July of 2022.
Performance
Of course, investors look for strong performance in funds. FSCPX has a 5-year annualized total return of 12.45% and is in the middle third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 4.21%, which places it in the middle third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 22.99%, the standard deviation of FSCPX over the past three years is 25.14%. The fund's standard deviation over the past 5 years is 24.69% compared to the category average of 24.54%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
The fund has a 5-year beta of 1.24, so investors should note that it is hypothetically more volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. Over the past 5 years, the fund has a negative alpha of -3.85. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, FSCPX is a no load fund. It has an expense ratio of 0.75% compared to the category average of 0.99%. FSCPX is actually cheaper than its peers when you consider factors like cost.
While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Fidelity Select Consumer Discretion ( FSCPX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, this fund looks like a great potential choice for investors right now.
Want even more information about FSCPX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.
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